Compensation Philosophy
Adopted through the FY 2003 Budget ProcessPlease contact Classification and Compensation Services at 715-1400 with questions regarding this information.
Total compensation includes both direct compensation (i.e., wages) and indirect compensation (i.e., benefits). The purpose of having a compensation philosophy is to document an organizational vision with regard to the factors that will be considered in determining how employees will be compensated (i.e., paid). Determining those factors requires consideration of the following questions:
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What type of applicants are we seeking?
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What is our retention policy?
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How much do we want to invest in employees by orienting and training them to succeed in their jobs?
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What is our market? (Market is defined as the recruitment zone and/or salary comparison areas used to help guide fair, consistent, and specific market-competitive pay decisions.)
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What resources will we use to assess the market?
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How often will we assess the market?
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Do we want to lead, match, or lag the market with regard to pay?
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What factors will drive pay adjustments, e.g., merit, market, cost of living? (As you know, our current system provides a merit pool to departments/agencies that is used by supervisors to determine pay rate increases based on employee performance.)
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How are pay and benefits balanced to provide a comprehensive compensation program?
Through progressive, creative, and innovative government leadership, Johnson County Government will provide cost-efficient and high quality services to the citizens of Johnson County. The organization seeks to recruit and retain employees with a commitment to public service and a desire to make a difference in the community.
Scope - The total compensation program applies to all employees of Johnson County Government, with the exception of Elected Officials and the Executives reporting directly to the Board of County Commissioners. The compensation program applies to the Sheriff's Office Civil Service System with some structural differences for administration of merit pay.
Objectives - It is through the dedication and commitment of employees that the County fulfills its mission of providing timely and quality services that enhance the lives of Johnson County residents and taxpayers. To recognize and reward employees’ contributions, the County will establish a total compensation program that delivers competitive pay and benefits to our employees. To be effective, the compensation program will be:
- Aligned with our culture and support the achievement of our strategic goals and objectives;
- Competitive within comparable labor markets;
- Internally equitable;
- Recognize and reward individual, department/agency, and organizational performance excellence;
- Supportive of our ability to attract and retain qualified and productive employees;
- Easily understood and administered;
- Compliant with all legal, regulatory, and statutory aspects affecting compensation and benefits; and
- Administered in accordance with our financial resources.
The elements of our total compensation program include:
- Job Evaluation – a system that defines the general scope and complexity of the work required and determines the relative value of positions in an internally equitable fashion.
- Base Pay – annual or hourly pay received for work performed; the rate on which many benefits are calculated (e.g., insurance, retirement, leave payments).
- Differential Pay – compensation, in addition to base pay, for specific business requirements and/or working conditions (e.g., shift work, on-call pay, foreign language skills).
- Performance Appraisal – the process by which performance goals are established, monitored, reviewed and rewarded through base pay increases or non-base pay incentives for individual or collective/team contributions.
- Incentive Compensation – compensation, in addition to base pay, granted for individual, team, department/agency, and/or organizational performance.
- Benefits/Perquisites – organizationally-sponsored and government required health and welfare plans, salary continuation and retirement programs, and development and recognition plans.
The County’s compensation philosophy is to be competitive within the relevant comparable labor markets for base salary; recognize outstanding performance and organizational contributions through the use of incentives; establish differential pay practices consistent with the market; and offer benefits that are market competitive.
The following table identifies the comparable labor markets for the County:
Classification/Grade Range |
Comparable Geography |
Labor Market/Industry |
Grades 21 - 28 |
National |
Public Sector |
Grades 16 - 20 |
Midwest Regional |
All Industry |
Grades 10 - 15 |
Local |
All Industry |
Civil Service |
Johnson County |
Police Departments |
Valid and reliable data sources from each of the four comparable labor markets will be used to determine the actual market targets and the County’s market competitive position.
- Job Evaluation - All positions are evaluated and assigned to a pay range. New positions are evaluated and assigned a pay range before the position is posted. Significant changes in the responsibilities or accountabilities of a position may require a re-evaluation. All positions are evaluated using the Hay Guide Chart® -Profile Method of Job Evaluation. The County uses policies and procedures to ensure the fair and consistent administration of the job evaluation system.
- Base Pay - The County maintains a pay range base salary structure coordinated with the job evaluation system. The goal of base pay is to provide employees with a market competitive rate, and periodic market adjustments to base pay may be made contingent upon adequate financial resources. The salary structure provides sufficient breadth in each pay range to recruit and retain qualified and productive employees. Pay ranges will be routinely evaluated and updated using external compensation surveys and data. Annually, the County communicates the amount of base pay and the assigned pay range to each employee during the performance appraisal process.
- Differential Pay - Differential pay practices compensate employees for the inconvenience of working irregular shifts or having limited flexibility during nonscheduled hours to accommodate the organization’s business needs; differential pay can also be used to compensate bi-lingual or multi-lingual employees if those skills are required by the job. These rates are reviewed systematically to ensure that they are aligned with the business needs of the County and are market competitive.
- Performance Appraisal - As a part of the annual review process and with new hires, annual performance plans are developed with each employee and his/her supervisor. At the end of the period, actual performance is evaluated against expected performance. Individual base pay may be adjusted according to the level of performance. Civil Service employees in the sheriff's Office receive more than one review each year and the Civil Service Salary Structure includes defined pay steps in which employees receive one step increase annually based upon acceptable performance.
- Incentive Compensation - Incentive pay programs will be developed as part of the system implementation and will be relevant to specific goal attainment, overall excellence, and achievement beyond stated objectives. Individual and team awards will be based upon departmental performance, organizational performance, and available funding.
The County seeks to attract and retain quality employees with its indirect compensation package, recognizing that current and potential employees often consider benefits a primary factor when choosing employment. It is the County’s goal to help employees achieve a positive balance between their work and personal lives by providing choices that meet the needs of a diverse workforce and educating employees regarding those choices.
To remain competitive, the County will provide ongoing analysis of the level, nature, and variety of benefits offered to employees, with a long-term focus on monitoring trends, costs, and options. The scope and value of the benefit plans and programs are reviewed regularly. In the future, the County will communicate the value of the benefits to each employee annually.
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This page last updated: August 9, 2006
